Additional Stimulus Measures Announced, Mainly for Smes
Additional stimulus measures EY Tax Alert (Special Edition) announced, mainly 6 April 2020 - Issue No. 06 for SMEs Small and medium enterprises (SMEs) are the backbone of the Coverage of this Alert Malaysian economy, contributing almost 40% of the nation’s Gross • Enhanced Wage Subsidy Domestic Product (GDP) and employing two-thirds of the Malaysian Programme workforce. Further to the announcements on 27 February 2020 and • Financial assistance initiatives 27 March 2020 of the Economic Stimulus Packages (ESPs) totaling • Rental exemptions or discounts RM250 billion, various interest groups had requested the Government for SMEs and further tax to provide additional support in certain areas, especially to the SMEs. deduction for participating owners The Government has considered the feedback and announced today an • Other initiatives (for all qualifying additional RM10 billion stimulus package to support businesses, businesses) particularly the SMEs. In this alert, we discuss some of the key measures proposed in today’s additional stimulus package. Further, in recognition of the importance of startups to spur the use of technology and develop human capital towards achieving Industry 4.0, the Government announced that it would evaluate initiatives to stimulate startups during these difficult times. Further announcements on this are expected in due course. On 1 April 2020, a Special Cabinet Committee (Committee), co-chaired by Senior Minister and Minister of International Trade & Industry (MITI), YB Dato’ Seri Mohamed Azmin Ali, and Senior Minister and Minister of Defence, YB Dato’ Sri Ismail Sabri Yaakob, was established. The objective of the Committee is to develop strategic measures to safeguard Malaysia’s economy and labour market, which have been impacted by COVID- 19, whilst striking a balance amongst the nation’s economic priorities and ensuring effective enforcement of the Movement Control Order (MCO).
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